G-bits(603444) Guoyuan Securities·2024-10-28 00:41Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Views - The company experienced a decline in core product revenue, impacting overall performance, but continues to provide substantial cash dividends to shareholders [1] - The company is focusing on long-term operations of core products, with rapid growth in overseas business and a robust product pipeline [1][2] Financial Performance - For the first three quarters of 2024, the company achieved revenue of 2.818 billion yuan, a year-on-year decrease of 14.77%, and a net profit attributable to shareholders of 658 million yuan, down 23.48% [1] - In Q3 2024 alone, revenue was 859 million yuan, a decline of 10.36% year-on-year, with a net profit of 140 million yuan, down 23.82% [1] - The company’s R&D expenses increased, with a ratio of 20.70% for the first three quarters of 2024, up 4.01 percentage points year-on-year [1] Product Performance - The core product "Wandao" saw a revenue increase of 7.71% year-on-year, while "Wandao Mobile" revenue decreased by 14.13% [1] - The overseas gaming business grew significantly, with revenue reaching 369 million yuan, a year-on-year increase of 99.57% [1] - The company has a strong product pipeline, with several self-developed games in testing and scheduled for release in 2025 [1][2] Profit Forecast - The company is expected to achieve net profits of 911 million yuan, 1.095 billion yuan, and 1.245 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 12.6, 15.2, and 17.3 yuan [2]